Go First Says Will Respond To DGCA Show Cause Notice In Due Course

With liabilities worth Rs 11,463 crore and a financial crunch, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations

Press Trust of India

Updated on: 9 May 2023 6:21 pm

Go First

Cash-strapped Go First on Tuesday said it will respond to aviation regulator DGCA's show cause notice in due course and is taking all possible measures to reduce inconvenience to the passengers.

The Wadia group-owned carrier, which is awaiting the NCLT decision on its plea for voluntary insolvency resolution proceedings, also said that it stopped booking tickets before the Directorate General of Civil Aviation (DGCA) directed it to do so on Monday.

The airline cancelled all its flights till May 12 and suspended sale of tickets till May 15. Against this backdrop, the DGCA, on Monday, directed the airline to immediately stop ticket sales and also issued a show cause notice for its failure to continue operation of the service in a safe, efficient and reliable manner.

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In a statement on Tuesday, Go First said it will respond to the DGCA's show cause notice in "due course."

The DGCA has asked the airline to submit its reply within 15 days of the receipt of the show cause notice, and further, a decision on the continuation of its Air Operator's Certificate (AOC) will be taken on the basis of the reply submitted by it.

"To reduce the inconvenience to the passengers, we had already stopped taking bookings, before the DGCA issued the notice," Go First said on Tuesday, adding that the airline is taking all possible measures to reduce passenger inconvenience.

Go First cancelled all its flights starting from May 3 amid financial crunch owing to non-delivery of engines by Pratt & Whitney and subsequent grounding of a large part of its fleet.

With liabilities worth Rs 11,463 crore and a financial crunch, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.

The cash-strapped carrier has not flown since May 3, a day after filing for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT).

The lessors of the carrier have opposed Go First's plea for an interim moratorium contending that it would have "harmful and serious consequences".

In a setback to the ailing airline, lessors have so far sought the deregistration of 36 planes of Go First.